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The Ministry of Industry and Trade (MOIT) of Vietnam has proposed a new regulatory framework for foreign e-commerce platforms providing cross-border services in Vietnam. Under the latest draft Law on E-commerce, these platforms would be required to obtain a license and establish representative offices or appoint legal entities as their authorized representatives within the country.
Stronger Measures to Regulate Cross-Border E-commerce
Currently, the registration of e-commerce activities and the establishment of representative offices are governed by Decree 52 of 2013, which was amended by Decree 85 of 2021. However, these requirements apply only to traders and organizations operating websites that either:
- Use a Vietnamese domain name,
- Display content in the Vietnamese language, or
- Conduct over 100,000 transactions originating from Vietnam per year.
Despite these regulations, some cross-border e-commerce platforms, such as Temu and Shein, continue to operate in Vietnam without formal registration. These platforms allow Vietnamese users to download apps, purchase goods, and make payments without being subject to the country’s e-commerce regulations.
The draft Law on E-commerce seeks to close regulatory loopholes by stipulating that foreign e-commerce platforms must complete registration procedures with the competent authorities. If they fail to do so, they will be prohibited from selling goods and providing services in Vietnam. Furthermore, entities providing e-commerce support services—such as intermediaries, logistics providers, and payment service providers—would be barred from cooperating with platforms that do not comply with these regulations.
Enhanced Consumer Protection Measures
The draft law also introduces stricter compliance requirements for e-commerce platforms, including:
- Authentication of Foreign Sellers: E-commerce platforms would be required to verify the identity of foreign sellers before permitting them to operate.
- Compensation for Violations: Platforms would be obligated to compensate buyers in cases where violations occur.
- Classification and Compliance of Foreign Goods: Goods and services offered on e-commerce platforms must be clearly classified as domestic or foreign and must adhere to Vietnam’s regulatory standards.
- Identification Requirements for Sellers: Individuals and businesses selling goods or services on e-commerce platforms must comply with identification and e-authentication regulations. They would also need to provide personal information, including name, address, identification number, and personal income tax identification number.
Implementation Timeline
The draft Law on E-commerce is scheduled to be reviewed and passed by the National Assembly in May 2026. If enacted, these provisions will significantly impact foreign e-commerce platforms operating in Vietnam, requiring them to align with local regulatory and consumer protection standards.
This proposed legislation reflects Vietnam’s efforts to enhance oversight of cross-border e-commerce activities, ensuring a fair and transparent digital marketplace while safeguarding the interests of consumers and local businesses.
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